Next warns of Iran hit to prices + FirstGroup in line – Daily Business

Next profits rose but the Iran war may force up prices

Fashion chain Next has warned that instability in the Middle East – which represents around 6%
of its total turnover – may force it to raise prices.

It has accounted for £15 million of additional costs that are likely to arise from the conflict, such as fuel and air freight, on the assumption that the disruption lasts for three months. These costs have been offset by savings elsewhere, so do not affect its guidance.

“Beyond the next three months, if we see these costs persist, then we will begin to pass costs through as higher pricing – but for today that remains a contingency not a plan,” it said in a statement.

“At this point, the longer term implications of the conflict are uncertain, and Next is not well placed to make predictions.

“As yet, we have no feel for the medium-term effects on supply chain resilience, freight rates, factory gate prices and consumer demand. Much will depend on how long the conflict persists, and how much permanent damage is done to the world’s energy infrastructure.

“We will give a more detailed update with our first quarter Trading Statement on 6 May. We believe we will have a much clearer picture by then”.

The statement came alongside annual figures for 2026 showing profit before tax of £1.158 billion, up 14.5% on a 10.9% rise in full price sales.

Profit was £8m higher than previous guidance due to better than expected full price sales in January, along with improved clearance rates in the end-of-season sale.

It is guiding to a 4.5% rise in profit to £1,210bn for 2027 and anticipates returning £500m of cash to shareholders through share buybacks, special dividends or capital return.

The board is recommending a final ordinary dividend of 181p per share, which would bring the total ordinary dividends for the year to 268p per share.

FirstGroup

FirstGroup indicated that both First Bus and First Rail divisions are trading in line with expectations.

First Bus has seen growth through acquisitions and mitigation of industry challenges, while First Rail’s open access services and the upcoming London Overground contract are progressing well.

The company has also enhanced its fuel and electricity hedging for FY 2027 and FY 2028, with approximately 88% and 53% of fuel requirements hedged respectively for those years, and significant electricity consumption also covered.

FirstGroup anticipates modest growth in adjusted earnings per share for FY 2026 and expects to end the fiscal year with an adjusted net debt position of £135-145 million.

Serica Energy

Serica Energy reported a challenging year for 2025, with revenue falling to $601 million from $727m in 2024, primarily due to lower production averaging 27,600 boepd.

Despite lower oil prices at $67/bbl, gas prices increased to 84 pence per therm, and the company completed four acquisitions,positioning it for production to exceed 65,000 boepd by the end of 2026.

The company maintained its final dividend at 10 pence per share and reported a net debt of $200 million as of December 31, 2025.

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